Ways to Invest $100 (Pt. 2)

6. Invest in ETF

The problem with mutual funds is that they typically require that you have at least $1000 to invest. Many require $3,000 or more. Unfortunately we are only investing 100 dollars so mutual funds are pretty much out. The good news for us is that ETF’s are a way to invest in mutual funds and are available at a very low cost. ETF stands for “exchange-traded fund”. This means that instead of having to purchase a mutual fund through one of the many mutual fund companies we can purchase it just like we invest in stock from the stock market.

7. Invest in Dividend Paying Stocks

A dividend is a sum of money paid out of a company’s profits on a regular basis (usually quarterly) to its stockholders.The reason that these types of stocks can be very profitable is that it allows you to grow your portfolio by reinvesting the dividend in new shares of stock. The bonus is that companies that pay dividends are usually very stable because they have good cash flow. This means their stock prices don’t go up and down rapidly affecting your investment.

8. Index Funds

Basically the fund invests in a large number of stocks called an index. The most famous is the S&P 500, but there are tons of different ones and they are dirt cheap to invest in through any of the top online brokers.

9. Money Market Account

Money market accounts (MMAs) are another form of savings account that tends to get a slightly higher interest rate.MMAs usually have limited check writing privileges and are very easy to get money in and out of. Because of this ease of use you are going to get very low interest rates.

10. Certificates of Deposit

Most often referred to as a CD, certificates of deposit are like a savings account, but they lock up your money for a specific amount of time. This amount of time can be as little as 13 months or as long as 10 years. The longer you lock in your money the higher the interest rate.

Thanks for watching this video. If you missed part 1 you can view it by clicking the link below. And stay tuned for part 3 of Way to invest with $100. Be sure to leave your comments and like or share if you found this content helpful.